You do not worry about how your bank is investing your money because your deposits are federally insured. This is an example of:
A. a positive spillover.
B. moral hazard.
C. adverse selection.
D. irrational behavior.
Answer: B
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The government program that provides aid to families in need is
A) TANF. B) Social Security program. C) Supplemental Security Income program. D) Earned Income Tax Credit.
Many college bookstores give faculty a discount that students do not receive. Show with a sketch graph why this practice is most likely a profit maximizing strategy instead of a college perk given to the faculty at college expense.
What will be an ideal response?
The demand for cars in a certain country is given by: D = 20,000 - P, where P is the price of a car. Supply by domestic car producers is: S = 5,000 + 0.5P. If this economy is open to trade, and the world price of a car is $6,000, how many cars will be imported?
A. 2,000 B. 6,000 C. 3,000 D. 4,000
If faculty choose to stay with an old edition of a book, this is predicted to
A. increase royalty payments to authors. B. have no impact on royalty payments to authors. C. increase costs to students D. decrease royalty payments to authors.